NutriBand Inc. Debt Disclosure

4.	NOTES PAYABLE

 

Notes Payable

 

Active Intelligence, entered into an agreement with the Carolina Small Business Development Fund for a line of credit of $160,000 due October 16, 2028, with interest of 5% per year. The amount assumed was $139,184. The loan requires monthly payments of principal and interest of $1,697. During the year ending January 31, 2025, the Company made $16,117 of principal payments. As of January 31, 2025, the amount due was $69,132, of which $16,953 is current. As of January 31, 2024, the amount due was $85,249.

 

On April 3, 2022, the Company entered into a retail installment agreement for the purchase of an automobile. The contract price was $32,274, of which $22,795 was financed. The agreement is for five years bearing interest at 2.95% per annum with payments of $410 per month. The loan is secured by automobile. As of January 31, 2025, the amount due was $10,689 of which $4,663 is current. As of January 31, 2024, the amount due was $15,232.

 

Note payable-related party.

 

On July 17, 2023, the Company entered an amended Credit Line Note agreement, for an increased $5,000,000 credit line facility to the Company entered on March 17, 2023. Outstanding advances under the Note bears interest at 7% per annum. The promissory note is due and payable in full on March 19, 2026. Interest is payable annually on December 31 of each year during the term of the note. The Company received advances of $300,000 during the nine months ending October 31, 2024. On May 15, 2024, the Company agreed to convert the $300,000 debt. The conversion was made pursuant to the terms of a Conversion Agreement, which provided the conversion of $300,000 of principal and $4,922 of accrued interest. The Company issued 76,230 shares of common stock and 152,460 warrants exercisable at $6.43 per share, resulting in a $368,036 loss on extinguishment. As of January 31, 2025, the balance due was $-0-. The Company recorded interest expense of $4,163 and $60,453 for the years ending January 31, 2025, and 2024, respectively.

Secured borrowing liability.

 

On July 19, 2023, the Company entered into an accounts receivable sale agreement for one of its subsidiaries in connection with a bankruptcy claim. The Company received $106,528 and recorded the transaction as a secured loan payable against the account receivable. The sale of the account receivable balance was to an outside third party, whereby if the bankruptcy court does not pay the balance in full, the Company will owe back the unpaid portion. The loan is classified as a current liability as the Company expects the bankruptcy will be resolved in the next twelve months. The loan bears interest at 10%. For the years ending January 31, 2025, and 2024, the Company recorded an interest expense of $10,482 and $5,470, respectively.

 

Interest expenses for the years ending January 31, 2025, and 2024, were $21,407 and $75,815, respectively.